Indirect Cost Payments Foregone by Institutions Receiving Minority Biomedical Support Grants--What Can Be Done?

HRD-77-55: Published: Mar 9, 1977. Publicly Released: Mar 9, 1977.

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Indirect cost payments are prohibited on Minority Biomedical Support Program grants. Estimates of the amounts foregone by grantees as a result of this prohibition were developed. The review was conducted at the National Institutes of Health (NIH) and consisted of examining records and interviewing officials.

The section of the appropriation legislation under which the program is funded prohibits the use of grant funds to pay for indirect costs related to grant activities. The indirect cost payments foregone by the 78 institutions that have participated in the program were estimated to be between $1.4 million and $4.3 million, with the higher figure probably being more realistic than the lower one. The indirect cost rate for fiscal year 1976 was estimated to be about 16 percent, with the rate increasing at about 2 percent per year. Several legislative and administrative alternatives are available to allow payment of indirect costs to program grantees. These include treating support program grants like research program project grants and requiring institutions to enter into agreements whereby their research project funds are transferred to finance support program grants.

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